Prerequisites for Step 3 include:
- Cost/benefit analysis
- Implementation road map
- Review and approval
Cost/benefit analysis. Develop estimated costs to achieve the site’s water replenishment target (Appendix 3) and secure funding, considering the site’s ongoing water stewardship activities already underway. The total cost of an activity can be determined based on the activity’s capital expenditures (CAPEX) plus the activity’s operating expenditures (OPEX) for at least the first 10 years of the activity lifetime. The activity’s CAPEX refers to the capital expenditures required to implement the water stewardship activity in the first place; the activity OPEX refers to the day-to-day costs that are necessary to maintain the activity over time.
Total Cost =CAPEX+OPEX (years 1 to 10)
Time and materials provided to a water stewardship activity can be quantified monetarily and included as part of the CAPEX or OPEX when relevant; and sites that are interested in developing the cost-benefit analysis for water governance or other catalytic activities are encouraged to do so in collaboration with the relevant internal water stewardship champions.
Implementation road map. Develop an implementation road map for achieving the site’s water replenishment target (Appendix 4), considering the site’s ongoing water stewardship activities already underway.
Review and approval. Submit the cost/benefit analysis and implementation road map to the relevant internal water stewardship champions and other parties for review and approval.
Step 3.1 Document baseline
Baseline conditions can be estimated using existing empirical information available in the public domain (from government agencies, regulators, or other thirdparty estimates), as well as local knowledge.
Step 3.2 Select VWBs indicator and complementary indicators
Note that each shared water challenge may be caused by a variety of underlying drivers. Special attention is required to select the right type of activity and indicator to address the driver of the shared water challenge. To that end, Appendix 1 includes a table to help identify the right type of activity and indicator for the underlying driver of each shared water challenge.
Step 3.3 Gather required data and calculate VWBs and complementary indicators
Step 3.4 Allocate VWBs and complementary indicators
When required, allocate volumetric water benefits, based on the total volumetric water benefit achieved for a given time and the approach to allocation agreed upon with all activity partners in advance of implementing the project, as outlined in Step 2.2.